(i) Cash is paid into bank.
(ii) Cash remitted into bank.

(i) When both the debit and credit aspects of a transaction are recorded in the cash book, such entries are called "Contra Entries".
(ii) Contra means "see opposite side". This also explains that particular entry is posted on the other side (contra) of the same book because Cash A/c and Bank A/c are there in the cash book only and there are no separate ledger accounts needed for this purpose.

If all these small payments are recorded in the main cash book, it will be loaded with lot of entries. Hence, all petty payments of the business may be recorded in a separate book, which is called as "Petty Cash book"

(i) Trade discount is a deduction given by the supplier to the buyer on the list price or catalogue price of the goods
(ii) It is given as a trade practice or when goods are purchased in large quantities. It is shown as a deduction in the invoice.
(iii) Trade discount is not recorded in the books of accounts. Only the net amount is recorded.

(i) Cash discount is allowed to the parties making prompt or immediate payment. It is discount allowed (loss) for the creditor and discount received (gain) for the debtor who makes payment
(ii) The discount is allowed when payment is received or made and hence the entry for discount is also passed with the entry of payment.

Analytical petty cash book: The petty cash book has debit side and credit side. The debit side is smaller and the credit side is bigger and it has many columns. For each important petty expense, there is a separate column and therefore 'columnar cash book' is another name for this petty cash book. In this book, each petty payments is first entered in the total payments column and then recorded in the respective analytical column so that:
(i) the total amount spent on each expenses for a particular period can be easily ascertained by adding up the respective column.
(ii) only the periodical total of each column is posted to ledger. It saves labour and time.
(iii) the total petty payment for any period can be easily ascertained from the total payment column.

Posting of entries in the petty cash account:
(i) When petty cash is advanced at the beginning:
A separate petty cash account is opened in the ledger. When advance is received by the petty cashier, petty cash account will be debited and cash account will be credited.
(ii) When individual expenses column are periodically totalled. The total of various petty expenses are debited and the petty cash account is credited with the total of the payments made.
The petty cash account will show the balance of cash. This balance will be shown in the balance sheet as part of cash balance.

Cash book: It is a special journal (subsidiary book) which is used to record all cash receipts and cash payments. It is a book of original entry or prime entry since transactions are recorded for the first time from the source document.
The features of cash book are:
(i) It is one of the subsidiary books.
(ii) It is a book of original entry.
(iii) The cash book is a ledger. It is designed in the form of a cash account.
(iv) It records all cash receipts on the debit side and all cash payments on the credit side.
(v) It always shows debit balance, as payments can never exceed cash available.

Following are the difference between cash discount and trade discount.

(i) The amount given to the petty cashier in advance is known as "Imprest Money". The word imprest means payment in advance.
(ii) The word imprest means payment in advance.
(iii) The petty cashier makes payments from this amount and records them in petty cash book. At the end of a particular period the petty cashier submits the petty cash book to the head cashier.
(iv) The head cashier scrutinises the petty payments and issues a fresh cheque equal to the amount spent by petty cashier so that the total amount with the petty cashier is how equal to the amount he had received in the beginning as advance.
(v) Under the system the total cash with the petty cashier never exceeds the imprest and at any time during the period. This method thus provides an effective control over petty payments.